With $19.6 Bn, India among Top Countries in IoT Spending Globally

The recently published IDC Worldwide Semiannual Internet of Things (IoT) Spending Guide has predicted that the Asia Pacific region, excluding Japan (APEJ), will spend around 36.9% of the worldwide spend, making it the global leader for IoT spending in 2019. Following APEJ will be the US and Western Europe with 26.1% of the WW IoT spend in 2019, respectively.

In 2018, China spent US$159.1 billion, making it the top spender in the region. Following China were South Korea and India that spent US$22.6 billion and US$19.6 billion , respectively.

Ashutosh Bisht, senior research manager at IDC, said: “The per capita IoT spending among the APEJ countries is quite varied, it is primarily related to the demographics, broadband penetration, coverage and capacity of the nation’s infrastructure, including telecommunications, modernity of commercial buildings, firm demographics, highways, and electricity/gas/water distribution.

However, South Korea took the number one spot per capita, followed by Australia and New Zealand.

“South Korea is the top
APEJ country in terms of per capita IoT spending followed by Australia
and New Zealand. The key drivers of IoT penetration will include
proliferation of cloud-based back-end services for data acquisition and
analytics, and 5G fixed wireless deployments that are expected in
Australia, New Zealand, and Philippines before 2020.”

The year 2018 also saw IoT services as the largest technology category with $83.5 billion spent on traditional IT and installation services as well as non-traditional device and operational services.

Hardware spending was close behind at $78.4 billion, led by more than $65.7 billion in module/sensor purchases.

IoT software spending totaled $43.3 billion and will see the fastest growth over the five-year forecast period (2017-22) with a CAGR of 15.8%. Services spending will also grow faster than overall IoT spending with a CAGR of 13.3%, IDC said.

In 2018, the top three industries spending most on IoT solutions were — discrete manufacturing ($43.9 billion), process manufacturing ($33.2 billion), and utilities ($20.1 billion) .

IoT spending among manufacturers will be largely focused on solutions that support manufacturing operations and production asset management.

In utilities, more than half of IoT spending will go toward smart grid(electricity), followed by smart grid(gas).